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9 Examplesof organizations thatleverage the fullpotential of PeopleAnalytics
People Analytics Case Studies withBusiness ImpactPeople Analytics is a hot topic in HR.Being an emerging field it’s importantto show the value it can deliver toorganizations.In this case study collection we havecollected some of the best PeopleAnalytics case studies we’ve comeacross in the past two years. Each oneconnected to a specific businessimperative.You can find the original publication ofeach case study in this article.1. CREDIT SUISSESaving money by predicting who will quit2. BEST BUYRelating store income with engagement3. EXPERIANGetting ahead of employee attrition4. FMCG RETAILERTesting employee training effectiveness5. E.ONTackling employee absence6. SHELLEmployee engagement7. UNILEVERAutomated listening during a hostile takeover8. CISCOOpening a new office9. ROLLS-ROYCEImproving the assessment process
1. CREDIT SUISSEPredicting who will quitOn March 13 2015, the Wall Street Journal published anarticle titled: “The Algorithm That Tells the Boss Who MightQuit”. The article explored how Credit Suisse was able topredict who might quit the company. It was one of the firstexamples of the now very popular employee churn analytics.BUSINESS IMPACT:Not only were the analysts at Credit Suisse able to predict whoApproximately 70,000,000in savings per year byretaining high performingemployeesmight quit, but they also could identify why these people mightquit. This information was provided anonymously to managersso they could reduce turnover risk factors and retain theirpeople better.In addition, special managers were trained to retain the highperforming employees who had a high flight risk. In total, thisprogram saved Credit Suisse approximately 70,000,000 ayear.
2. BEST BUYCompeting on Talent AnalyticsAnother great HR analytics case study of people analytics atwork was published in the Harvard Business Review. In anarticle titled Competing on Talent Analytics, the authorsdescribe their research in multiple large companies in the US.They specifically researched the relationship betweenengagement and financial performance. Engagement is oftenseen as the holy grail of HR – but its impact is hard to measure.The authors describe that some organizations “can preciselyidentify the value of a 0.1% increase in engagement amongemployees in a particular store.” They take the example of BestBuy, where a 0.1% increase in engagement results in over 100,000 in annual operating income per store.The significance of this relationship motivated Best Buy tomake employee engagement surveys quarterly rather thanannually. The full article can be found here.BUSINESS IMPACT:0.1% increase in employeeengagement results in over 100,000 in annual operatingincome per store
3. EXPERIANTurnover at ExperianEmployee attrition at Experian was a problem. The companywas facing levels of turnover that were 3-4% higher than theywanted it to be.By building a predictive model that included 200 attributes,including team size and structure, supervisor performance, andlength of commute, they were able to predict flight risk.An example risk factor was teams of more than 10 to 12people. The analytics team also identified flight risk triggers:when someone moved further away from the office, this wouldincrease immediate flight risk.The model was rolled out in multiple regions – with slightdifferences to the predictive algorithm. These insights,combined with good management practices, reportedlyresulted in a drop in attrition of 2-3% over the past 18 monthswith an estimated saving of 8,000,000 to 10,000,000.BUSINESS IMPACT:Estimated savings of 8,000,000 to 10,000,000over the past 18 months
4. FMCG RETAILERA/B Testing Employee TrainingA brief case study is presented in an article written by TonyBrugman and Rob van Dijk from their own consulting work.The company was a large Dutch FMCG retailer that usedpeople analytics to analyze the effects of training. The analystsfound that training shop personnel had a positive impact onthe shop’s financial performance. This was measured throughA/B testing. In the first year alone, the ROI of their trainingprogram was 400%BUSINESS IMPACT:An ROI of 400% on trainingprograms in the first year
5. E.ONSick days at E.ONPeople analytics also helped E.ON tackle employee absence.Absenteeism in this German 43,000 people energy companyhas risen above benchmark.The analytics team formulated 55 hypotheses, tested 21 ofthem and validated 11.BUSINESS IMPACT:One of the examples written in the report was that selling backImproved their understandingof the causes of absenteeismand reached effective meansto reducing the latter.untaken holiday did not increase absenteeism. What didincrease absence was a lack of a long holiday somewhereduring the year, or not taking a day or two once in a whileduring the year. This insight was communicated to managers toimprove holiday approval policies.
6. SHELLEngagement at ShellAt Shell, engagement was linked to superior businessperformance, through improved safety practices.A 1% increase in employee engagement resulted in a 4% dropof ‘recordable case frequency’, a key industry safety standard.Safety performance was in turn directly related to businessperformance.BUSINESS IMPACT:1% increase in employeeengagement resulted in a 4%drop of ‘recordable casefrequency’
7. UNILEVERUnilever: automated listeningduring a hostile takeoverWhen Kraft Heinz launched a hostile takeover bid in early2017, Unilever’s workforce analytics team showed thatanalytics could also be deployed in times of crisis.BUSINESS IMPACT:The team analyzed networks in the organization, and createImproved the design andimplementation of costreduction and growth plansand subsequently moreeffectively leveraged thestrengths of their businessmodels to come up with potential cost reductions.In addition, the team was able to track the employees’ moodsand attitudes, which enabled them to see how employees werereacting to Unilever’s defence strategies. These insightsdirectly helped decision-making processes during the crisis.According to Clement, vice-president of HR, “the informationwe provided helped both in putting together cost reductionplans and providing information to back up the feasibility ofour growth plans, so we could show that we were better placedto leverage the strengths of our business than Kraft Heinz.”
8. CISCOOpening a new office by CiscoCisco has used demographic data to identify where they canbest open up new offices. By combining various data, includingcurrent usage rates of office space, cost and availability of keytalent, and availability of graduates from universities allowedthem to expand in areas where there were fewer larger playerscompeting for the same talent.In addition, when selecting a new office, Cisco made use of thissame data to find locations where employees with relevantqualifications were available and abundant.BUSINESS IMPACT:Expanded their market sharein areas with fewer largerplayers competing for thesame talent; improved theirsearch for locations abundantin employees with relevantskills
9. ROLLS ROYCEImproving the assessment processMost leading employers rely on very similar same assessmenttests in their recruitment processes. This leads todisengagements amongst candidates and high drop-out rates.Rolls-Royce enlisted Aon to help them reduce their drop-outrate by implementing a much shorter, more engagingassessment that reliably identifies the most talented and highpotential candidates.With this improved and refreshing experience, Rolls-Roycemanaged to increase the registration for their online testsfrom 74% to 96% for their ‘business stream’ applicants andfrom 81% to 95% for their ‘engineering stream’ applicants.Overall, 98% of applicants that registered for online testscompleted all of them.BUSINESS IMPACT:By using a shorter, moreengagaing assessment, thecompletion rate of candidatesincreased to 98%
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People Analytics is a hot topic in HR. Being an emerging field it’s important to show the value it can deliver to organizations. In this case study collection we have collected some of the best People Analytics case studies we’ve come across in the past two yea
